NorthMarq arranged financing of $5.26 million for the acquisition of a 56-unit apartment community in Boise, Idaho
BOISE, IDAHO (December 16, 2019) – Steve Hollister, senior vice president of NorthMarq’s Boise and San Diego regional offices, arranged this $5,260,000 loan through a correspondent life insurance company. The transaction, which facilitated an acquisition of the asset, was structured with a 10-year fixed loan and a 30-year amortization. The asset was under construction when the borrower signed the loan application and locked the interest rate. The loan commitment allowed six months for the asset to be completed and stabilized with no premium in the interest rate.
“The six month funding window without a rate premium was a very attractive structure to the borrower, enabling them to eliminate interest rate risk well in advance of completion of construction, stabilization and acquisition. The asset only needed to generate a certain NOI from tenants in occupancy to fund, without any additional stabilization period,” said, Hollister.
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